Companies: SCO   

Video telecommunications specialist SCOTTY Group has turned last year’s £379,000 interim loss into a maiden £304,000 first-half pre-tax profit.

Turnover at the AIM-quoted company fell £1.5 million to £2.5 million in the six months to January. This reflects Bracknell-based SCOTTY’s disposal of its ‘tele-health’ operations to focus on the government, military and aerospace markets, a move that chairman and aviation specialist Lord Trefgarne declares has ‘already been vindicated’.

The company, which lost £765,000 in the year to last July, ended January with some £600,000 cash. During the six-month period, SCOTTY won a £2.5 million contract with Diamond Aircraft Industries for the Venezuelan government and it is now also involved in a £10 million upgrade programme for the Eurocopter CH53.

Trefgarne reports that ‘growing momentum’ is now being generated by the company’s specialised satellite communication systems. He argues that present concern with national security and border control by governments around the world augurs well for SCOTTY.

Shareholders must hope he is right. Floated at 4p five years ago, SCOTTY shares hit 15.75p in 2004 before collapsing to 0.72p last December.

Now 1.25p, they value the company at £12.6 million.

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